The intuitive appeal of Barr Laboratories' pooling-of-interest stock-swap acquisition of Duramed Pharmaceuticals is so clear that the temptation is to ask "What took so long?" The new Barr will offer a broad line of generic oral contraceptive products. Duramed also brings to Barr a formidable physician detailing force. Barr has built up a war chest by developing formulations and successfully challenging the validity of patents. Duramed, however, never recovered from its battle over the right to introduce a generic version of AHP's conjugated estrogens, Premarin. Now, with its legal, regulatory, and governmental affairs capabilities, Barr may re-open the Premarin case.
It's not your father's generics industry anymore. The once
dominant strategy of price competition has given way to
consolidation, market dominance, proprietary development programs,
and world-class patent litigators.
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